US-based biopharmaceutical developer Avidity Biosciences has filed to raise up to $100m in an initial public offering that will enable pharmaceutical firms Eli Lilly, EMS and Takeda to exit.
Avidity is working on antibody oligonucleotide conjugates – a type of biomolecule that hypothetically combines precision and tissue selectivity – to treat serious diseases.
The company is initially concentrating on muscle diseases and will spend part of the IPO proceeds on advancing its lead drug candidate, AOC 1001, through a phase 1/2 clinical trial for a rare monogenic muscle disease known as myotonic dystrophy type 1.
Additional proceeds will fund development of AOC 1001 for muscle atrophy and Duchenne muscular dystrophy, in addition to work on Avidity’s technology platform.
Avidity has raised $125m since it was founded in 2013, Eli Lilly contributing $15m to a $100m series C round closed in November 2019 that included Brace Pharma Capital and Takeda Ventures on behalf of EMS and Takeda, as well as drug manufacturer ST Pharm.
The round was led by RTW Investments and also featured Alexandria Venture Investments, a subsidiary of real estate investment trust Alexandria Real Estate Equities, in addition to Cormorant Asset Management, CureDuchenne, Logos Capital, Perceptive Advisors, Boxer Capital, EcoR1 Capital and Partner Fund Management.
The company secured $10m in equity financing and $6m in debt through a 2017 series B round led by Takeda Ventures and backed by Brace Pharma Capital, Alexandria Real Estate Equities and Prime Capital, a subsidiary of investment and financial services group Fidelity.
Alethea Capital Management, EcoR1 Capital, Moore Venture Partners and Boxer Capital owner Tavistock Life Sciences also participated in the series B round.
Avidity had closed a 2014 series A round at $9.1m according to a securities filing, raising the money from Brace Pharmaceuticals, F-Prime (then known as Fidelity Biosciences), Partner Fund Management, Alethea Capital and TPG Biotech, part of private equity group TPG.
RTW Investments, the owner of a 14.5% stake, is the company’s largest shareholder, followed by Cormorant Asset Management (10.6%), Eli Lilly (10.4%), Alethea Capital (8.2%) and EcoR1 Capital (6.2%).
Cowen and Company, SVB Leerink, Credit Suisse Securities (USA) and Wells Fargo Securities are the underwriters for the offering, which is slated to take place on the Nasdaq Global Market.
